|
Managers Letter
ISO 9000: An Investment In Your Company's Future
by Marie Valenta
Like many companies, yours has probably considered becoming ISO 9000 registered. It's an arduous process, but one that can bring prestige, consumer trust and increased business to your company.
A Brief History of ISO
The International Organization for Standardization (ISO) was founded in 1946 in Geneva, Switzerland, to develop a common set of manufacturing, trade and communication standards. The ISO 9000 core series was first published in 1987. To date, more than 100 nations and about 50,000 organizations have adopted ISO standards. In the United States, more than 2,000 organizations have ISO registration, including the General Services Administration, which now says that contractor inspection systems meeting ISO standards are acceptable alternatives to federal standard 368.
The intent of the ISO 9000 series is that a basic quality system be implemented to ensure customers that suppliers have the capabilities and systems to provide quality products and/or services.
The ISO 9000 standards consist of three alternative qua-lity assurance models: ISO 9001, 9002 and 9003. Each represents a distinct form of functional or organizational capability. The appropriate one to use depends on the activity of the business being registered.
Description of Standards
ISO 9000
Gives an overview, defines terminology and provides guidance for selecting other standards in the series. ISO 9000 requirements are clearly defined, but implementation methods are left to the organization. Clear documentation of all work processes affecting quality is required, but that documentation can be in a variety of forms.
ISO 9001
The most comprehensive standard includes all the clauses of ISO 9002 and 9003. It focuses on the design, development, production, installation and servicing of products and services.
ISO 9002
Applies to contractual arrangements when specified requirements are used for design or specifications. Limited to quality management in production and installation. Both 9001 and 9002 cover contract review, document control, purchasing, process control, handling, storage, packaging and delivery, training and internal quality audits.
ISO 9003
Requires supplier to demonstrate ability to detect and control disposition of any product nonconfor-mity during final inspection and testing. Includes assessment and registration procedures.
ISO 9004
Enables customization of quality standards and assurance that they conform to real-life situations. It is the tool for internal quality management purposes.
The Eight Steps to ISO Certification
1. Evaluation of existing quality procedures against the requirements of the ISO 9001-9003 standards.
2. Identification of corrective action needed to conform with ISO 9000 series standards.
3. Preparation of a quality assurance program.
4. Definition, documentation and implementation of new procedures.
5. Preparation of a quality manual.
6. Quality manual preassessment meeting with registrar.
7. Actual assessment visit.
8. Certification.
The Costs and Benefits of ISO Certification
Most companies spend from $10,000-$50,000 to become certified, and the registration process takes 12-18 months, depending on which standard is registered. These costs include the registrar's time, audit training, outside consultants, etc. However, in a recent survey of registered companies, 89% noted greater operational efficiency and 48% stated they were more profitable after registration.
Most companies make this investment for both internal and external benefits. Internally, adherence to ISO standards can improve quality, shorten cycle time, reduce resource utilization and increase profitability. Externally, government agencies and corporations require that organizations they do business with be ISO certified.
ISO Standards and World Trade
ISO-registered companies are able to select among ISO companies worldwide and feel confident that they are dealing with quality companies. The U.S. Office of Technology Assessment (OTA), a research arm of Congress, says that: "International standards developments will not only affect U.S. competitiveness in Europe, they will also affect U.S. competitiveness in the world market.... Many industrialized nations used standards as marketing devices to sell their products in Eastern Europe and to the developing countries of the world.... They recognize if they can influence the choice of standards in the developing world, trade will likely follow."
Evaluate Your Own Organization
The Performance TRAK Group of Gaithersburg, MD, has developed an evaluation tool based on ISO 9001 (the most comprehensive) standards. You can use it to measure the ISO-readiness of your company. These questions are from the sections on
Quality Policy and Responsibility and Authority
and were
selected for their broad application.
Scoring:
Rate each statement using a scale of 1-5. Guidelines for each numbered rating are described below:
1. Uninitiated.
Current quality assurance practices and/or documentation do not meet audit item's requirements.
2. Partial Compliance
. Requirements of audit item have been addressed in limited ways.
3. Near Compliance.
Requirements of audit item have been generally addressed but some elements are still lacking.
4. Full Compliance.
Requirements of the item have been addressed and describe conditions within your company.
5. Exceeds Standard.
Documented procedures and their execution constitute an industry standard.
Your Company's Quality Policy:
Quality Management and Quality Assurance
defines quality policy as "the overall intentions and direction of an organization as regards quality, as formally expressed by top management."
Rate each statement using the 1-5 scale outlined above:
1. The organization has defined its quality policy, quality objectives and quality commitment.
2. The documented quality policy is easy to understand, relevant, ambitious yet achievable.
3. Management acts to ensure everyone understands, implements and maintains the quality policy.
Responsibility and Authority:
This area focuses on those responsible for preventing product nonconformity, identifying and recording product quality problems, recommending solutions and verifying their implementation.
Rate each statement using the 1-5 scale outlined above:
1. Individuals in the organization are aware of the scope,
responsibility and authority of their functions.
2. Individuals are aware of their impact on product service and quality.
3. Individuals have adequate authority to carry out their responsibilities.
4. Individuals clearly understand their defined authority.
5. People accept responsibility for achieving quality objectives.
Scoring:
Add answers for each section. Divide total score by 3 and 5, respectively, to determine your ISO-readiness in the areas of quality and responsibility/authority.
Where Do You Stand?
You have just evaluated your organization on two of the 20 standards measured by ISO 9001. How do your processes measure up?
ISO standards are an invitation to rethink corporate strategy, ensuring that it is current, relevant and that it will move your organization into the future. You can use ISO standards for certification or as guidelines to improve quality, productivity and profitability within your organization. It's your choice and your future.
ISO Resources
Copies of ISO standards can be obtained from:
The American National Standards Institute
11 West 42nd St., 13th floor, New York, NY 10036
Phone: (212) 642-4900, Fax: (212) 302-1286
For a complimentary copy of the survey:
The Performance TRAK Group
9511 Briar Glen Way #100, Gaithersburg, MD 20879
Phone: (800) 815-2466, Fax: (301) 869-9548
American Society for Quality Control (ASQC)
611 East Wisconsin Ave., Milwaukee, WI 53202
Phone: (414) 272-8575
Marie Valenta
is president of California-based High Performance Programs, a management consulting and training firm specializing in empowering individuals, teams and organizations. She is a motivational speaker, adjunct professor, nationally syndicated columnist and author of
Power Vision: A Guide for Executives and Entrepreneurs.
She can be reached at (760) 632-0126.
The
Managers Letter
is published throughout the year by Olsten Corporation. For editorial inquiries, write Olsten Corporation, Marketing Communications Department, 175 Broad Hollow Road, Melville, NY 11747.
Material from the
Managers Letter
may be quoted or reproduced, provided appropriate credit is given to indicate that the material was taken from the
Managers Letter,
a publication of Olsten Corporation.
|
